1 August 1981: MTV goes on air

On this day in 1981, MTV went on the air. It was an instant success, gaining two million viewers within less than a year.

Until the 1970s, most Americans solely watched free-to-view TV that was broadcast over the airwaves to an aerial. Networks were funded by advertising, so they focused on shows that appealed to as broad an audience as possible.

However, the growth of cable TV in the late 1970s allowed a new business model to develop, based on pay-TV channels where viewers paid a monthly subscription. This enabled the launch of television channels aimed at a smaller segment of the population.

Young music fans were one prominent example. While promotional music videos had been around in some form since the 1960s, they were a minor part of the music landscape, and confined to shows such as Top of the Pops in the UK. It was the new pop channel MTV that would make them part of mainstream culture.

MTV was founded by former radio announcer Robert Pittman, who came up with the idea after producing a music video show on a New York TV station. It launched in 1981, with the first video played on the channel being Video Killed the Radio Star by The Buggles.

MTV was an instant success, gaining two million viewers within less than a year. Two years after its launch it had ten million subscribers (it claims a current global viewership of over a billion). Demand was so strong that it eventually split into several sub-channels, moving on from solely music videos to include cartoons and the first "reality" TV series. The rapid uptake of cable TV was key to its success. Today, only 7% of US households get their TV solely from over-the-air programming, with 83% subscribing to some form of pay-TV.

Recommended

Share tips of the week – 2 June
Investments

Share tips of the week – 2 June

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
2 Jun 2023
Which house-price index is the best?
Property

Which house-price index is the best?

Britain is obsessed with house prices, and we have at least four house-price indices to choose from to measure the rate of increase in the value of ou…
1 Jun 2023
The top healthcare funds to buy
Investments

The top healthcare funds to buy

Increasingly rapid progress in drugs and healthcare technology makes these trusts top tips, says Max King.
1 Jun 2023
7 winners and losers in the leisure sector
Investments

7 winners and losers in the leisure sector

It’s been a wild three years for hospitality, but crisis creates opportunities, says Michael Taylor of Shifting Shares.
1 Jun 2023

Most Popular

Best savings accounts – June 2023
Savings

Best savings accounts – June 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
1 Jun 2023
Savings inertia - why we should all be obsessed with interest rates and savings accounts right now, says Kalpana Fitzpatrick
Savings

Savings inertia - why we should all be obsessed with interest rates and savings accounts right now, says Kalpana Fitzpatrick

Are savers still missing out on hundreds of pounds by not moving their cash for better interest rates?
30 May 2023
One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills
Energy

One day left for households to claim the £200 Alternative Fuels Payment to help with heating bills

Households could be due a £200 payment if they heat their homes using alternative fuel sources and aren’t connected to the mains gas grid - but time i…
30 May 2023